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Felix W. Handoyo
Research Center for Behavioral and Circular Economics, the National Research and Innovation Agency (BRIN)Jalan Jend. Gatot Subroto Kav.10, South Jakarta

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Covid-19 Case: Does Indonesian Need Health Endowment Fund? Felix W. Handoyo; Esta Lestari; Ikval Suardi; Atika Z. Rahmayanti
Jurnal Ekonomi dan Pembangunan Vol. 30 No. 2 (2022): Jurnal Ekonomi dan Pembangunan
Publisher : BRIN Publishing (Penerbit BRIN)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14203/JEP.30.2.2022.81-100

Abstract

This paper examines whether Indonesia needs a Health Endowment Fund (HEF) to find the efficiency and effectiveness of the health cover fund. Since 2014, Indonesia has officially implemented the National Health Insurance (NHI or Jaminan Kesehatan Nasional/JKN) according to Law No.40/2004. The implementation of NHI is technically managed by Health Social Insurance Administration Organization (HSIAO), also known as Badan Penyelenggara Jaminan Sosial (BPJS) Kesehatan. Since 2014, the trend of people living with non-communicable diseases (NCDs) hasincreased between 2007and 2014. This trend may lead to future consequences of potential fin ancial deficits for HSIAO. Furthermore, many countries,including Indonesia, have been facing fiscal shock due to recessions from the COVID-19 pandemic and increasing deficits from health insurance claims. By employing secondary data IFLS4, IFLS5, and BRIN survey data in 2020, this study investigates the effect of NCDs on household expenditures to assess the need for HEF in Indonesia. Using regression analysis, the result showed that NCD was associated with household’s per capita expenditure and access to health care. Moreover, NCDs harm subjective health status. Therefore, HEF may be a long-term solution for the financial burdenthat HSIAO may face mitigating fiscal shock for the government budget.
Co-Authors Atika Z. Rahmayanti Esta Lestari Ikval Suardi